Tuesday, April 07, 2020

Wednesday Watch

Evening Headlines
Bloomberg:           
  • Asia Stock Futures Drop; Dollar Holds Losses: Markets Wrap. Stocks in Asia looked set to halt a two-day rally after U.S. equities gave up solid gains, with investors weighing signs of a slowing rate of coronavirus spread against more fatalities. The dollar held losses amid an easing in funding strains, and the offshore yuan traded near its strongest in three weeks. U.S. equity futures erased losses and edged higher in early trading, signaling more volatility to come after the S&P 500 Index gave up a gain of as much as 3.5% Tuesday to close lower. Futures declined in Japan, Hong Kong and Australia. Treasuries dipped on Tuesday. Futures on the S&P 500 added 0.5% as of 8:43 a.m. in Tokyo. The index lost 0.2% on Tuesday. Futures on Japan’s Nikkei 225 dropped 1.2%. Hang Seng futures earlier fell 1.4%. Futures on Australia’s S&P/ASX 200 Index retreated 1%
Wall Street Journal:
CNBC.com: 
Zero Hedge:
Night Trading 
  • Asian equity indices are -1.25% to -.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 139.25 -1.5 basis points.
  • China Sovereign CDS 52.50 -2.0 basis points.
  • Bloomberg Emerging Markets Currency Index 57.98 -.10%.
  • Euro Stoxx 50 futures -1.66%.
  • S&P 500 futures -.47%.
  • NASDAQ 100 futures -.32%.
Morning Preview Links

Earnings of Note 
Company/Estimate
Before the Open:
  • (RPM)/.21
After the Close:
  • (PSMT)/.79
Economic Releases
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory gain of +9,678,500 barrels versus a +13,833,000 barrel gain the prior week. Gasoline supplies are estimated to rise by +5,821,000 barrels versus a +7,524,000 barrel gain the prior week. Distillate inventories are estimated to rise by +787.600 barrels versus a -2,194,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to fall by -1.79% versus a -5.0% decline prior. 
2:00 pm EST
  • FOMC March 15 Meeting Minutes.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The weekly MBA Mortgage Applications report, weekly Bloomberg Consumer Comfort Index and the $17B 30Y T-Bond auction could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are lower, weighed down by commodity and financial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

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